The Conservative Party has withdrawn its support for two candidates who are being investigated over betting on the timing of the general election.

The Conservative election campaign has been plunged into crisis as two Tory candidates, two officials, and an officer from Rishi Sunak’s close protection team are being investigated by the Gambling Commission over the placing of bets on the timing of the election.

The prime minister had insisted he had to wait until the Gambling Commission’s inquiry had concluded to take any action but had faced pressure to suspend Craig Williams and Laura Saunders, the two Tory candidates.

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On Tuesday morning, nearly two weeks after Mr Williams became the first person to be investigated, the Conservative Party announced they were no longer being supported as Tory candidates.

Ms Saunders is standing in Bristol North West and Mr Williams is standing in Montgomeryshire and Glyndwr – the only Welsh seat the Conservatives were projected to win in last week’s YouGov poll.

They will still appear on ballot papers as Conservative candidates as it is too late to change them ahead of next Thursday’s vote but they will have no support for the rest of the campaign from the party and cannot call themselves Conservatives.

Whether they will remain as Conservatives after the election depends on the outcome of the Gambling Commission’s investigation, it is understood.

A Conservative Party spokesman said: “As a result of ongoing internal enquiries, we have concluded that we can no longer support Craig Williams or Laura Saunders as parliamentary candidates at the forthcoming general election.

“We have checked with the Gambling Commission that this decision does not compromise the investigation that they are conducting, which is rightly independent and ongoing.”

Sky News has contacted Ms Saunders and Mr Williams for a comment.

The two officials under investigation both took a leave of absence last week when their names were revealed. They are Tony Lee, the Tory’s director of campaigns and husband of Ms Saunders, and Nick Mason, the party’s chief data officer – who has denied any wrongdoing.

Mr Sunak’s close protection officer has been arrested

Sky News understands many more people are being looked into as part of the investigation, and more police are being looked into to see if they are involved.

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Among those calling for Mr Sunak to suspend the candidates were fellow Conservatives Sir Robert Buckland, a former justice secretary; Tobias Ellwood, a former defence minister; Steve Baker, a current Northern Ireland minister; Home Secretary James Cleverly and Baroness Ruth Davidson, a former leader of the Scottish Conservatives.

Baroness Davidson, speaking on Sky News’ Electoral Dysfunction podcast, had said Mr Sunak should ignore the watchdog and suspend those being investigated.

She said: “The Gambling Commission are very, very clear about what you’re not allowed to say when somebody’s being investigated by the Gambling Commission.

“But I’m sorry, you’re the prime minister of a G7 nation in the middle of an election campaign when you’re fighting for your life.

“If the Gambling Commission want to shout at you for suspending somebody and saying that, just do it. That’s what leadership is.”

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The Labour Party and Lib Dems had also called for the candidates to be suspended.

Labour shadow minister Jonathan Ashworth said the delay in suspending the candidates shows the Conservatives believe “it is one rule for them, and another for everyone else”.

“It is yet another example of Rishi Sunak’s staggeringly weak leadership that it has taken him nearly two weeks to see what was obvious to everyone else,” he added.

“The Conservatives who sought to line their own pockets by betting on the election date are not fit to be candidates for parliament.

“Rishi Sunak now needs to come clean with voters across the country and tell them exactly how many of his Conservatives are implicated and who they are.”

Daisy Cooper, the Lib Dems’ deputy leader, said: “This should have happened immediately when these scandalous revelations emerged, but instead, Rishi Sunak has dithered and delayed.

“Sunak must confirm immediately that these candidates will not have the Conservative whip if elected.

“From the mini budget to this gambling scandal, the Conservatives have bet against Britain and now face a reckoning at the ballot box on 4 July.”

The other candidates for Bristol North West are:

Caroline Gooch, Lib Dems

Darren Jones, Labour

Scarlett O’Connor, Reform UK

Mary Page, Green Party

Ben Smith, SDP

The other candidates for Montgomeryshire and Glyndwr are:

Jeremy Brignell-Thorp, Green Party

Oliver Lewis, Reform Uk

Glyn Preston, Lib Dems

Elwyn Vaughan, Plaid Cymru

Steve Witherden, Labour